U.S. smartphone sales increased by 8% year-on-year in 2023, mainly due to the "very strong" performance of Apple's iPhone. As the latest global smartphone data shows, a new report claims that high-end phones like Apple's are performing better than lower-priced devices.
According to a note seen by Counterpoint Research on AppleInsider, Apple's sales share rose to 64% in the fourth quarter of 2023. This is the company's highest market share since the fourth quarter of 2020.
This drove overall smartphone shipments to grow by 8% year-on-year, with Counterpoint attributing both this growth and iPhone growth to Apple's recovery from the chaos of the previous year's COVID-19-induced factory shutdowns.
Counterpoint North America research director Jeff Fieldhack said: "The fourth quarter is usually very strong for Apple given the strong demand for iPhones during holiday sales. Throughout 2023, Apple has made progress in the prepaid space with its N-2 or N-3 devices, while the iPhone 12 or iPhone 11 sold at very low prices also helped Apple expand market share in this area."
The bar chart shows the market share of various original equipment manufacturers in the U.S. smartphone market. Apple ranks first in U.S. smartphone sales, followed by Samsung, Motorola, Google, TCL, etc.
Counterpoint said that the sales of Android phones in the sub-$300 market have "the largest decline", and the sales of Android phones have declined overall.
Hanish Bhatia, associate director at Counterpoint, wrote: "The outlook for 2024 will largely depend on the U.S. economy. It is an election year, which usually means improvement in various economic parameters. Therefore, demand is expected to pick up across all price segments, thereby increasing demand across the country." Achieving modest growth this year, the growing presence of MVNOs (mobile virtual network operators) like Google Fi in retail channels across the country will continue to bring competition to the prepaid business, which will be another driver at the lower end of the market as Affordable Connectivity Plan (ACP) funding is likely to end or be reduced soon."
Counterpoint also predicts that the high-end smartphone market will continue to grow in 2024 due to the emergence of generative artificial intelligence capabilities. It is also reported that Apple is planning to introduce more artificial intelligence features to the upcoming iPhone16 series in iOS18.